Blog

The Takeaway

Illinois Senate Bill 328 would expand jurisdiction over out-of-state businesses that conduct business in the state. Cases involving asbestos and toxic torts claims would be among those most affected.

Senate Bill 328’s Provisions

Illinois Senate Bill 328 (SB 328) presents a sweeping change to personal jurisdiction in Illinois. The Bill has now passed both houses of the Illinois General Assembly. Unless the governor vetoes it, it will become law.

SB 328 would significantly impact certain foreign corporate defendants sued in toxic tort cases in Illinois. This is particularly true for businesses active in the important asbestos dockets of Madison, St. Clair, and Cook Counties.

The Bill provides that a corporation is subject to the general jurisdiction of Illinois courts if it’s either a corporation having its principal place of business in Illinois or a foreign business corporation that’s consented to general jurisdiction in Illinois in accordance with the Business Corporation Act of 1983. Additionally, these changes apply only if the foreign corporation is sued in an action that alleges injury or illness that resulted from exposure to a toxic substance (as defined under the Uniform Hazardous Substances Act of Illinois) and as long as jurisdiction is proper as to one or more named co-defendants under the Code of Civil Procedure. It is irrelevant whether the injury or events related to the lawsuit arose inside or outside Illinois.

For a corporation already registered to conduct business in the state, the new general jurisdiction provisions would become effective upon the next filing deadline for its annual report. This is true regardless of whether the report is actually filed. For corporations that register to do business in the state after the Bill’s effective date, the Bill’s effects would take place immediately.

Effects of the Bill

While it’s hard to ignore the impact this will have on Illinois’ asbestos dockets, the Uniform Hazardous Substances Act of Illinois (430 ILCS 35/1) also applies to other substances as well. Indeed, “toxic” substances means, “any substance (other than a radioactive substance) which has the capacity to produce bodily injury or illness to man through ingestion, inhalation, or absorption through any body surface.”

Pennsylvania is the only other state with a law similar to SB 328. It should be noted that SB 328 has a number of vocal critics. Therefore, it’s possible that Governor Pritzker may veto it. (That’s what Governor Hochul of New York did when confronted with similar legislation.)

If your company falls under the Uniform Hazardous Substances Act and has been sued in Illinois, it’s important to seek legal advice to evaluate the impact of this law. HeplerBroom’s Product Liability teams have extensive experience evaluating personal jurisdiction issues and are ready to assist you.